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Gov't help on home values

Profile picture for 6abx20
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So what's the chance that those of us who bought during the bubble ever get any real relief from the gov't?  I'm talking about first time buyers people who bought during the bubble so they made no money from the bubble, put real down payments down on a principal residence and got a conventional mortgage.  On paper my 20+ percent down and paid towards principal is almost wiped out by decline in value, so I can't refinance to the 1.5% lower rates or sell without losing nearly all equity.  Please spare me the insults.  There are many well-intending buyers who are causualties of the governments failure to regulate this mess from 2001-2007.   I bought below my means, so my LTI ratio is too low for FHA adjustment programs.    My mortgage company won't adjust my loan until I'm delinquent.  Since I pay on time, I'm out of luck.  Isn't that the type of irresponsible behavior that started this mess?
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February 15 - Edgewood
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Yes, the fact that you feel like it is a god given gift that you should have equity and the lowest mortgage rate is what got us into this mess. You still got the tax advantages, you still own your own home rather than renting, yet you feel like you are owed because your home did not increase in value? As with any investment there is both risk AND reward.

FYI, I live in your neighborhood, bought in late 2006, put only 5% down, but I'm not upside down. Would it have been better to wait until 2008 to buy? Probably, but I still own a home and I live with my choices.


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February 15
Profile picture for sunnyview
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You may not like my answer either, but here it is. If you were responsible and put money down on your house, you are a sad casualty of largely NO bank regulation in my opinion. Appraisals done in the bubble were junk based on nothing but bank who wanted the fees, the standards for lending to other people who were not good candidates were junk and now we are all paying for it in for in bailouts and foreclosures. The banks will not help you because they figure that you will be ok without them and the govt feels the same. I like responsible people and I am sorry that you got caught in this mess. You are not the only one. Many people come to Zillow in the same situation. You are right is not fair, but it is real.
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February 15
Profile picture for Aaronius
Finance and real estate geniuses?  I'm a 25 year old software engineer with a modest home my wife and I just bought in November.  The answer to your question doesn't require knowledge of finance and real estate, just a touch of personal responsibility. You'll probably take that as offensive too.  No point in debating you folks.  :)
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February 15
Profile picture for 6abx20
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Yep, these are the types of insulting responses I should have expected from reading this forum which is apparently by the 99.9999th percentile of finance and real estate geniuses.  No point in debating you folks.
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February 15

"There are many well-intending buyers who are causualties of the governments failure to regulate this mess from 2001-2007."

So it would have been ok for the governent to tell you to rent rather than buy due to a "potentially" over-heating real estate market up ahead? Or  maybe a disclaimer statement on real estate signs "only those who can stomach a potential future loss should buy now".

If you were to get some form of help now- would you be willing to "split" any future appreciation in your property with the government. Becareful what you wish for.......

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February 15
Profile picture for azrob
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your equity is lost whether or not you refinance.

Had your home value gone up, I doubt you'd be on here complaining, so really what is your complaint? You can afford your home, millions of others are losing jobs and being foreclosed on. But you think the govt owes you a backstop? how the heck do you figure that?

You are only marginally upsidedown now, just keep paying, and wait a decade. Inflation will rise again.

Oh, and drink wine, but don't whine. Sometimes decisions turn out badly, didn't you learn that in life yet?
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February 15
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February 15
Profile picture for Aaronius
No, that isn't the type of irresponsible behavior that started this mess.  Buying a home without understanding the risks is.  Sorry, the government doesn't exist to bail you out.  It's a free society and nobody forced you to buy a house.  It sucks that you're in the situation you're in, but it also sucks that my stocks are down 70%.  That's my fault though and I'm willing to accept the responsibility.
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February 15
 

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